Could someone here explain what this is?

[conscious evolution]

I came across a filing by haliburton with the SEC and it kinda made me go 'huh?'.
It was a prospectus for some thing called Senior Notes.
Here is a link to the prospectus filed with the SEC http://idea.sec.gov/Archives/edgar/data/45012/000095012908004821/h60017be424b2.htm

Any insight would be appreciated.Thanks.

[NMDemDist2]

1. Senior notes are top tier of the unsecured bonds IIRC

they get paid before other unsecured debts I think. It's a way for a company to get money without selling more stocks

[conscious evolution]

2. Something like junk bonds?

[A HERETIC I AM]

8. "Junk Bonds" refers to the credit quality of a bond, not the type of bond it is.

These are Senior unsecured notes. There is no tangible property or assets backing them. What backs them is the general creditworthiness of the firm issuing them.

The Wikipedia page below shows how the 3 main rating agencies grade bonds based on credit quality.

Pretty much anything "Highly Speculative" and below would be considered a "junk" bond.


http://en.wikipedia.org/wiki/Bond_credit_rating

[ipfilter]

3. First in line to get repaid in the case of a BK.

Sort of like a 1st mortgage on a property is senior to a 2nd mortgage.

http://www.investopedia.com/terms/s/seniordebt.asp

[southerncrone]

4. If corp goes bankrupt, these notes must be paid first b/4 any creditors

or other debt holders are paid anything.

What would be interesting to know is WHO holds these Senior Notes w/Halliburton.
Want to take a guess?

I'm going to research.....will report back if I find anything interesting.

[marketcrazy1]

5. before you get your panties in a bunch

read the offering prospectus, no big deal.. IMO!

[conscious evolution]

6. Why the need

to raise a billion dollars? Especially when they brought in over 18 billion last year.

[marketcrazy1]

7. they are replacing an earlier debt issuance and extending the term

as far as i can see after a cursory glance at the posted filing. nothing to raise eyebrows, probably some tax advantages to it.

[HamdenRice]

9. The notes are only senior to other unsecured debt

Secured debt would be paid first. These notes get paid only before other unsecured debt.